The Great Digital Transformation sweeping the globe will require unprecedented levels of investment in digital infrastructure to deliver the products and services of the future. The initial phase of 5G deployment is well underway, the impacts of which, are already being felt by cell site landlords. Rapid changes to the industry contributed by factors including new technologies, consolidation and government regulations to name a few; are resulting in winners as well as losers as the digital landscape evolves.
In the current environment, many cell site landlords are choosing control over chance and taking advantage of the opportunity to liquidate their cell tower leases at historically high valuations.
It’s a seller’s market. Here are the top four reasons cell site owners consider when selling their wireless real estate assets:
- Prices are really high: Since the wireless leases first started trading almost 20 years ago the average values of individual leases have risen ~400%
- Lower tax rates: Cell site owners are often able to reduce their tax rate by as much as 50% on the cell site lease income and defer the tax burden for years into the future.
- Inflation concerns: One of the primary reasons cell site lease values are high is historically low interest rates. However, the Federal Reserve printing presses are running 24/7 so the likelihood for inflation around the corner is very real. Smart landlords realize that long term cell site lease contracts growing at 1-3% annually become really bad investments when interest rates rise.
- Opportunity Knocks: Cash is king, and many cell site landlords have a plan for what to do with it. From re-investing in a growing concern to acquiring investment property or simply being ready to act when the right investment comes along. Opportunity is the name of the game when selling a wireless lease.
Whether you’re a commercial real estate investor, a municipality or non-profit, a private landowner or a faith-based organization and would like to learn more about what you can do with your wireless real estate, connect with TowerPoint and consider the highest and best use of your wireless real estate.
Connect with TowerPoint today
